The Shimmering Paradox

Gold, India’s most cherished symbol of tradition and security, hides an economic shadow — billions locked in sentiment instead of enterprise, beauty bought at the cost of growth

- MOUSUMI ROY

India's gold obsession won't fade easily -- but neither will its economic cost

India’s love affair with gold is dazzling, but it comes with a price tag the nation pays in dollars, Every bride's necklace, every festival bangle, and every locker filled “for security” drains foreign exchange that could be used to build roads, fund universities, or support job creation.

In 2024 alone, India spent over USD 35 billion on gold imports, despite the current account deficit widening, At what point does tradition begin to weaken the nation’s economic muscle?

Gold in India is rarely bought as a market investment in the classical sense. It is an adornment that signals status, a daughter's security in marriage, and a symbol of familial continuity. What matters more than the price per gram is how much gold a bride brings into her new home or how heavily a woman is adorned ata festive occasion.

Households may argue that this is “an investment.” Still, almost all of it is reinvested only in more gold jewellery, exchanged for new designs, and heavier necklaces swapped for lighter, trendier pieces. In most middleand upper-middle-class settings, gold is not liquidated to buy homes, fund education, or start businesses. It rarely converts into productive economic capital; it circulates socially, not financially.